Guangzhou, China – Bitcoin broke through $ 37,700 on Thursday to help lift the total value of the entire cryptocurrency market above $ 1 trillion for the first time to hit a new record high.
According to Coindscue’s data, the digital coin hit a high of $ 37,739.08 at about 1:44 pm Singapore time, just hours after blowing before $ 36,000.
Bitcoin was up over 5% the day before at 2:42 pm Singapore time.
Cryptocurrency is around 29% since the beginning of 2021 and has grown over 380% in the last 12 months.
Meanwhile, the value of the entire cryptocurrency market, which is made up of Bitcoin and other digital coins such as Ether and Teether, surpassed $ 1 trillion for the first time on Thursday, according to CoinMarket’s data.
The resurgence of bitcoin has been attributed to a number of factors including over-buying from many institutional investors. For example, high profile investors like Paul Tudor Jones are buying bitcoins.
Many bitcoin bulls say cryptocurrency is similar to “digital gold,” a potentially safe-haven asset and a hedge against inflation. JPMorgan said in a recent research note that bitcoin can reach $ 146,000 in the long term as it competes with gold as an “alternative” currency. Investment bank strategists said that bitcoin would have to be much less volatile to reach this price. Bitcoin is known for wild price swings.
The idea of bitcoin as a hedge against inflation has continued to gain steam as governments around the world adopt large-scale fiscal stimulus programs. Analysts argue that this may increase inflation.
“This latest bull run in January is sure to attract the attention of asset managers to crypto even more diversified, as they are eager to find alternative investments, such as cryptocurrency or gold, inflation and geopolitical risks. To stop “Simons chain Cryptocurrency Financial Services executive director of investment and business at Babel Finance told CNBC.
“Recently a large number of retail investors have also joined the race because they fear missing the easy, quick profit opportunities from the latest Bull Run,” he said.
But some bitcoin critics – such as David Rosenberg, economist and strategist at Rosenberg Research – have called bitcoin a bubble.
“The parabolic move in bitcoin over a short period of time, I’d say for any security, is highly unusual,” Rosenberg told CNBC earlier this month.